The Arbitration Process In The United States

In this time of market globalization, many industrial companies are including detailed arbitration clauses in their international contracts, in order to avoid the potential costs, delays, and uncertainties of litigation in foreign courts. Arbitration is less expensive and more flexible, procedurally, than court proceedings, and arbitral awards enjoy much greater international recognition than judgments of national courts. More than 134 countries have signed the 1958 United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards, known as the "New York Convention", which facilitates the enforcement of arbitral awards internationally. There are several other similar arbitration conventions that provide for the enforcement of cross-border arbitral awards. Additionally, arbitral awards are not subject to appeal, whereas judgments of national courts are routinely subjected to a lengthy appeals process, and there are very few viable bases to challenge arbitral awards. This discussion will review key considerations in drafting arbitration clauses, including choice of law and choice of forum considerations; issues surrounding the selection of arbitrators; the discovery process; presentation of evidence; and enforcement of arbitral awards.